UPDATE1: Iris Ohyama sets up sourcing unit in Vietnam due to China labor costs
――Adds details, background in paragraphs 3-6
HO CHI MINH CITY, NNA - Japan’s furniture and household products maker Iris Ohyama Inc. has set up a Vietnamese unit to increase sourcing in Southeast Asia due to rising labor costs and tighter environmental regulations in China.
The company said last week that Iris Ohyama Vietnam in Ho Chi Minh City began operating on Nov. 15 as its suppliers in China shift their production to Southeast Asia, mainly Vietnam.
The local unit will procure furniture and household products made in Vietnam, Shinnosuke Miyagawa, an Iris Ohyama spokesman in Tokyo, told NNA, declining further comment.
In addition to its nine production facilities in Japan, Iris has as many factories in China and largely relies on procurement from there for sales in Japan, its main market. It is building a factory in South Korea to be completed in January.
The company has three plants in the United States and one in the Netherlands selling products locally, the spokesman said. A plant is under construction in France for completion this month.
Iris more than doubled its group sales to over 420 billion yen ($37 billion) in calendar 2017 from just under 200 billion yen in 2010. It has expanded sales by launching a series of low-priced home appliances such as televisions and LED light fixtures.